A sole proprietorship is the simplest and most common structure chosen to start a business. It is an unincorporated business owned and run by one individual with no distinction between the business and you, the owner. You are entitled to all profits and are responsible for all your business’s debts, losses and liabilities.

You do not have to take any formal action to form a sole proprietorship. As long as you are the only owner, this status automatically comes from your business activities. In fact, you may already own one without knowing it. If you are a freelance writer, for example, you are a sole proprietor. But like all businesses, you need to obtain the necessary licenses and permits. Regulations vary by industry, state, and locality.

In Idaho, a sole proprietorship is indeed the simplest business structure and does not require formal registration with the state to be established. As a sole proprietor in Idaho, you are automatically considered as such when you engage in business activities without registering as any other form of business entity. However, you must comply with all relevant licensing and permit requirements, which may vary depending on the type of business, location, and industry-specific regulations. It's important to note that as a sole proprietor, you are personally liable for all debts and obligations of the business, and there is no legal separation between your personal and business assets. To operate under a business name other than your own legal name, you would need to file a DBA (Doing Business As) with the appropriate county clerk's office. Additionally, depending on your business activities, you may be required to pay state taxes and should keep thorough records for tax purposes.